BSF USD High Yield Fixed Maturity Bond Fund

A different approach to traditional fixed income

Generating returns in today’s fixed income markets remains a challenge for investors. Despite monetary policy normalization and sustained global economic expansion, yields remain low on an absolute basis.

BlackRock’s new BSF USD High Yield Fixed Maturity Bond Fund presents an attractive strategy for investors looking to capitalize on high yield through a unique fixed maturity structure.

High yield: a strategic part of a balanced portfolio

With low correlation to investment grade fixed income and negative correlation to U.S. treasuries, high yield has generated attractive risk-adjusted returns over time.

As one of two fixed income assets able to yield over 4% since 20131, Global High Yield can be a key holding of investors’ portfolios.

Fixed income yields by asset class1

Fixed income yields by asset class

Less sensitivity during rising rate environments

While emerging market debt has also yielded over 4% in the last years2, a key differentiator of high yield is its history of lower sensitivity to rising interest rates.

High yield could potentially be a solution for investors who foresee moderately rising interest rates, amid synchronized global growth and less accommodative policy.

Performance during rising rate environments2

Bond performance during rising rate environments

Access high yield fixed income markets in a unique way

BlackRock has designed the BSF USD High Yield Fixed Maturity Bond Fund (BSF HYFM), a fixed maturity portfolio, to help investors efficiently access high yield fixed income markets.

Key fund facts


Average credit rating B1/B+
# of holdings 75-125 holdings
Estimated YTW (gross) 3.5% - 5.5%
Estimated YTM (gross) 4.0% - 6.0%
Estimated duration Expected 3 - 4 years
Estimated average maturity Expected less than 5 years
Estimated coupon 4% - 6% gross
Fund maturity Expected 2023

Expected Credit Ratings Breakdown (%NAV)3

Expected credit ratings breakdown (% NAV)

Expected Sector Breakdown (%NAV)3

Expected sector breakdown (% NAV)

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Limited investing period

Investors will only be able to purchase shares of BSF HYFM during the initial offering period. Hover over the different stages below to learn about BSF HYFM’s investment process.4

Initial offering period Approximately 3 months
Initial offering period
  • AUM gathering period, investor subscriptions
  • Investor subscriptions to remain in cash for this period
Investment Period 5 years
Investment Period
  • Portfolio ramp and initial bond purchases executed
  • AUM stabilization, no new capital allowed
  • Maintenance of bond positions; investors receive regular coupon payments (i.e. interest) on underlying bond exposures
Post-investment period Approximately 3 months
Post-investment period
  • AUM gradually decreases
  • Gradual disposition of portfolio assets
  • Return of principal to investors reflecting any market impact

Key resources

Want to know more? Explore the different literature available on the
BSF USD High Yield Fixed Maturity Bond Fund
Educational brochure on fixed
maturity portfolios.
An introduction to the fund and
its benefits.
Frequently asked questions about
the fund.